Do I Need Home Insurance After Paying Off My Mortgage?

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Congratulations! You’ve finally done it—you’ve paid off your mortgage. But now you may be asking yourself, do I still need home insurance in Evergreen, CO after paying off my mortgage? 

Yes, home insurance is still needed after you have paid off your loan. Davidson Insurance Agency explains why.

The Importance of Home Insurance

Home insurance provides financial protection for you and your family in the event of any major damage to your home or property, such as a fire or natural disaster. Without home insurance, any repairs that need to be made would come out of pocket, which can be financially devastating. It is still important to keep coverage on file to protect yourself from unexpected events.

In addition to protecting your finances, many states also require homeowners insurance for certain reasons. For example, lenders often require proof of homeowners insurance before approving a loan or refinancing an existing loan. This protects the lender from taking on additional risk by extending credit without the security of an insurance policy backing it up.

Types of Coverage You Need

Now that you know why home insurance is necessary, let’s discuss what kind of coverage you need. The most common types of coverage include dwelling coverage and liability coverage. Dwelling coverage covers physical damages caused by natural disasters like fires or floods while liability coverage offers protection against someone getting hurt on your property and covers legal costs associated with a lawsuit if necessary. 

Home insurance should always remain in place even after paying off your mortgage. It’s important to understand what type of coverage you need so that you are properly protected from any potential issues that may arise down the road. More questions? Contact Davidson Insurance Agency in Evergreen, CO today.

What Is Electric Car Insurance and How Can I Get Coverage in Colorado?

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An electric car is a vehicle that runs on electricity instead of gasoline or diesel. Because electric cars are still relatively new and not as common as traditional cars, they may not be covered by your regular insurance policy. It is important for electric car owners who want to get coverage for an electric car to know they may need to purchase a separate electric car insurance policy. Davidson Insurance Agency in Evergreen, CO is here to assist with all related queries.

How Does Electric Car Insurance Compare To Traditional Car Insurance?

Traditional car insurance policies cover accidents, damage to the vehicle, and liability. Electric car insurance policies typically only cover accidents and damage to the vehicle. They may not cover liability if someone is injured in an accident due to your negligence.

What Are Some of the Things Electric Car Drivers Need To Know About Their Coverage?

Some things electric car drivers need to know about their coverage include that they may not be covered for accidents caused by mechanical problems with the car, weather conditions (like rain or snow), and reckless driving.

What Kind of Auto Insurance Covers Electric Cars?

Electric car insurance coverage is different than insurance for gas-powered vehicles. Car insurance quotes for electric vehicles may be slightly higher than car insurance for non-electric, gas-powered vehicles. A licensed insurance agent can explain the difference in coverage for an electric car versus that of gas-powered vehicles that require traditional auto insurance coverage.

Get Electric Car Insurance Today

When you need electric car insurance in Evergreen, CO and surrounding areas, contact Davidson Insurance Agency! A licensed insurance agent at Davidson can explain available coverage options and offer drivers an electric auto insurance quote in Colorado.

Who Needs Umbrella Insurance?

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When you purchase insurance to cover liability at your Evergreen, CO home or business from Davidson Insurance Agency, you might want more coverage than our underwriters allow on a single policy. We don’t leave you in the lurch because we also offer umbrella insurance, a type of secondary insurance that you can add to any primary policy.

The insurance industry defines a primary policy as one that includes liability coverage, so you can add umbrella insurance to a homeowner’s, renter’s, auto, or business/commercial policy. You can not purchase only an umbrella policy.

Who Buys Umbrella Insurance?

Both individuals and groups need umbrella insurance. It offers added coverage in case the individual or organization gets sued. Certain individuals purchase it more often than others.

These individuals include members of the following groups:

  • Residing in a home with a swimming pool or trampoline,
  • Owning ATVs, Seadoos, other small land or watercraft,
  • Owning an exotic vehicle or supercar,
  • Within a decade of retirement or already retired,
  • Volunteering or working in a field that requires one-on-one consultation, such as coaching Little League, Pop Warner football, etc.
  • Serving on a company or non-profit’s board of directors.

That shortlist of rather common items increases the chance of you getting sued and/or a lawsuit wiping out your financial security without insurance. What do we mean?

Example of Umbrella Coverage Need

Let’s say, for example, that you’re 55 years old and own a home with a swimming pool. You regularly hold fundraisers there for your child’s Little League group. At the fundraising party, a child falls into the unattended pool and sustains lasting brain damage. He will require at-home nursing care for the remainder of his life.

Without umbrella insurance, the only coverage you have comes from your home policy, which typically includes liability coverage in the amount of 10 to 20 percent of the value of your home. That’s probably about $50,000 or so and that won’t pay for medical costs, court costs, legal settlement, and attorney fees. The rest comes out of your pocket and may mean emptying your retirement funds. Then you only have 10 to 15 years before retirement to rebuild what you had probably paid into for 33 years.

Get The Right Coverage Today

Umbrella insurance provides significant coverage that kicks in as soon as your main policy pays out its maximum. An umbrella policy costs only a few dollars each month for a half-million- or million-dollar policy. Contact Davidson Insurance Agency serving Evergreen, CO for information about umbrella insurance and to purchase your policy.

Things that home insurance won’t cover

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You buy home insurance to provide peace of mind and, in some cases, because you are required to by your mortgage holder. You may or may not be aware that no home policy covers everything that could possibly go wrong. There are always exclusions. Being aware of them and making the necessary adjustments is vital. At Davidson Insurance Agency in Evergreen, CO, we are independent insurance agents who work for you to find the personalized home insurance policy you desire.

Home Insurance Exclusions

Owner neglect

Your insurance company will hold no unrealistic expectations that you will maintain your home. It is your responsibility as a homeowner. If you neglect the care of your home, your home insurance will not cover the resulting damage. This includes things like termites, mold, rodent damage, and wear and tear. 

Flooding

Floods are one of the most damaging natural disasters and happen in many locations across the United States. Traditional home insurance does not cover flooding. You need to purchase a separate policy through the National Food Insurance Program in order to get the protection you may need. 

Earth Movement

Earth movement is not covered by home insurance either. This includes not only earthquakes but sinkholes and landslides. These are all types of earth movements. In order to be covered, you will need to purchase an endorsement providing this coverage. 

Sewer or sump pump backup

Having your sewer backup into your home is disgusting and not something anyone wants to have to deal with. It is even worse to discover that your home insurance isn’t going to pay for the cleanup and any damage that results. This coverage can be obtained through an addition to your policy at an additional charge. 

Get The Right Coverage For Your Home Today

Contact Davidson Insurance Agency in Evergreen, CO for any home insurance needs you may have. 

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